Monday, June 14, 2010

How Much Does it Cost for the City of Indianapolis to Replace a Light Bulb?

In light of what was reported in the Indianapolis Star this morning about the professional fees the City is paying on the proposed utility sale, this is my analysis of how much the City would spend to replace a $1 light bulb.
  • New Light Bulb $1

  • Financial advisers: $70,000
    --needed to know fiscal impact of the new light bulb

  • Lawyers: $35,000
    --needed to write up contract for installation of light bulb

  • Analysis/Due Diligence: $15,000
    --needed to make sure the contract is followed.

  • Engineering: $15,000
    --needed to study and report on best way of installing light bulb.

  • Public relations/communications: $25,000
    --needed to explain to the public why the light bulb was replaced.

Total Cost to Indianapolis Taxpayer to Replace $1 Light Bulb: $160,001.